Accessibility StatementSkip Navigation ORLANDO, Fla., Oct. 21, 2025 /PRNewswire/ --Â M-tron Industries, Inc. (NYSE American: MPTI) ("Mtron" or the "Company"), a U.S.-based designer and manufacturer of highly-engineered electronic components and solutions for the aerospace and defense, avionics, and space industries, announced that Cameron Pforr, Interim Chief Executive Officer, and other members of the Mtron management team will present at the Starting 5 Virtual Defense Conference, hosted by MS Microcaps an ...

Group 1: Stock Performance - M-tron Industries, Inc. (MPTI) closed at $53.10, with a +1.84% change from the previous day, outperforming the S&P 500's gain of 0.26% [1] - Prior to the latest trading session, MPTI shares had increased by 15.92%, contrasting with the Construction sector's decline of 1.68% and the S&P 500's rise of 2.87% [1] Group 2: Financial Forecast - M-tron Industries is expected to report an EPS of $0.57, reflecting a 29.63% decrease from the same quarter last year, while revenue is forecasted at $13.5 million, a 2.2% increase year-over-year [2] - For the full year, earnings are projected at $2.29 per share and revenue at $53.5 million, indicating a -13.58% change in earnings and a +9.16% change in revenue compared to the previous year [3] Group 3: Analyst Estimates and Rankings - Recent changes in analyst estimates for M-tron Industries indicate shifting business dynamics, with upward revisions suggesting positive sentiment towards the company's profitability [4] - The Zacks Rank system, which assesses estimate changes, currently ranks M-tron Industries at 4 (Sell), with no changes in the consensus EPS estimate over the past month [6] Group 4: Valuation Metrics - M-tron Industries has a Forward P/E ratio of 22.77, which is higher than the industry average of 22.35, and a PEG ratio of 0.81, compared to the Engineering - R and D Services industry's average PEG ratio of 1.81 [7] Group 5: Industry Context - The Engineering - R and D Services industry, part of the Construction sector, has a Zacks Industry Rank of 184, placing it in the bottom 26% of over 250 industries [8]

Accessibility StatementSkip Navigation ORLANDO, Fla., Sept. 18, 2025 /PRNewswire/ -- M-tron Industries, Inc. (NYSE American: MPTI) ("Mtron"), a leading provider of high-performance radio frequency ("RF") components and solutions, today announced it has been awarded a significant production contract from a top U.S. Department of Defense prime contractor in support of a brand new, novel multi-domain data link. The system effectively joins several communication data links together to dramatically shorten the ...

M-tron Industries Conference Summary Company Overview - **Company Name**: M-tron Industries (Ticker: MPTI) - **Industry**: Aerospace and Defense - **Stock Exchange**: NYSE American - **Founded**: 1965, focused on aerospace and defense since 2004 after merging two companies - **Current Stock Performance**: Spun out at around $13 per share in October 2022, reached a high of $71, currently trading in the mid to high $40s [4][6] Financial Performance - **Revenue Growth**: Achieved 20% year-on-year growth over the past three years [2][16] - **Sales Figures**: Trailing LTM sales of $52 million, primarily from aerospace and defense markets [10] - **Quarterly Revenue**: Approximately $13.5 million per quarter, up from $8 million two years ago [26][27] - **Gross Margin**: Increased from mid-30% to mid-40% [27] - **EBITDA Margin**: Targeting 20% to 21% long-term, currently around 18% [27][32] - **Cash Position**: $15.5 million on the balance sheet, expected to reach $19 million to $20 million by year-end [27] Market Position and Strategy - **Core Competencies**: Specializes in microwave and RF applications, vertically integrated manufacturing [5][10] - **Customer Base**: Serves top 10 U.S. defense primes and has over 70 customers with long-term relationships [6][10] - **Market Focus**: Concentrated on high-reliability sectors such as military aircraft, avionics, and precision-guided munitions [11][12] - **Growth Drivers**: Increased defense spending, modernization of military systems, and weapon system replenishment due to global conflicts [16][17] Product and Service Offerings - **Product Range**: Filters, oscillators, and subsystems primarily built around quartz crystals [10][11] - **Key Markets**: Aerospace (military and commercial), space and SATCOM, electronic warfare, and drone technology [12][13][24] - **R&D Focus**: Continuous innovation with 30% of revenue from products developed in the last three to four years [28] Acquisition and Growth Strategy - **M&A Plans**: Actively seeking complementary acquisitions in the $10 million to $20 million revenue range, focusing on cash-producing companies with good margins [31][40] - **Long-term Goals**: Aim for consistent growth of at least 10% annually, with a focus on maintaining gross margins in the mid-40s [32] Challenges and Considerations - **Tariff Impact**: New U.S. tariffs on India could affect margins by $500,000 to $1 million [35] - **Labor Market**: Improved conditions for hiring, with ongoing efforts to train and recruit skilled labor [43] Conclusion M-tron Industries presents a compelling investment opportunity within the aerospace and defense sector, characterized by strong financial performance, a solid customer base, and a clear growth strategy focused on innovation and strategic acquisitions. The company is well-positioned to capitalize on increasing defense spending and modernization efforts in the military sector [2][16][32]

Company Overview - M-tron Industries, Inc. is a U.S.-based designer and manufacturer of highly-engineered electronic components and solutions for the aerospace and defense, avionics, and space industries [1][4] - The company specializes in frequency and spectrum control products and solutions, providing support throughout the product life cycle, including design, prototyping, production, and upgrades [4] Recent Developments - Cameron Pforr, Interim CEO of M-tron, will present at the Sidoti Small-Cap Virtual Conference on September 17-18, 2025, discussing the company's momentum in the defense and aerospace sectors [1][2] - M-tron plays a significant role in U.S. national security by manufacturing radio frequency components for the U.S. Department of Defense and allied nations [2] Event Details - The presentation is scheduled to begin at 9:15 a.m. Eastern Time on September 17, 2025, and will be accessible via a live webinar [3] - M-tron will also conduct virtual one-on-one meetings with investors during the conference [3] Industry Context - The company operates within a market that focuses on small and microcap companies, with Sidoti & Company providing independent securities research and corporate access through investor conferences [3]

Core Insights - M-tron Industries, Inc. (NYSE: MPTI) reported mixed Q2 results, showing a decline in profitability while experiencing strong growth in order backlog [1] Financial Performance - The company experienced a deterioration in profitability during Q2 [1] - Despite the profitability decline, M-tron Industries reported robust growth in its order backlog [1] Investment Perspective - The analysis suggests a long-term investment horizon, typically between 5 to 10 years, focusing on a balanced portfolio of growth, value, and dividend-paying stocks [1]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $13.28 million, a 12.5% increase from $11.2 million in Q2 2024 [7] - Gross margins decreased to 43.6% from 47% in the previous year, primarily due to product mix and federal tariffs [7] - Net income was $1.6 million or $0.53 per diluted share, down from $1.7 million or $0.63 per diluted share in Q2 2024 [7][8] - Adjusted EBITDA decreased to $2.4 million from $3.5 million in the same period last year [9] - Backlog increased by 35% to $61.2 million compared to $45.3 million in June 2024 [9] Business Line Data and Key Metrics Changes - Revenue growth was driven by defense-related orders, particularly in avionics and space sectors [6] - The company reported strong book-to-bill ratios for three consecutive quarters, indicating robust demand [6] Market Data and Key Metrics Changes - The company operates in aerospace and defense, commercial avionics, industrials, and space markets [5] - The backlog reflects continued demand for products, including large defense and avionics orders [9] Company Strategy and Development Direction - The company is focusing on moving into more program business, which constitutes a significant portion of aerospace and defense revenues [12] - Strategic investments in research and development are ongoing to support future growth [6] - The company is considering small buybacks and mergers and acquisitions (M&A) as part of its capital allocation strategy [24][46] Management's Comments on Operating Environment and Future Outlook - Management noted that the first full quarter impacted by federal tariffs did not affect product demand [10] - There is optimism about improving gross margins in Q3 and Q4, although tariffs remain a variable [21] - The company anticipates continued revenue growth in the second half of the year, driven by product mix and backlog [42] Other Important Information - The company distributed dividends and warrants to stockholders, with warrants listed on the NYSE American Exchange [11] - The interim CEO is in the process of finalizing paperwork to remove the interim title [49] Q&A Session Summary Question: Impact of tariffs on gross margin - Management indicated that tariffs had a minor impact, approximately 1.25% of revenue for the quarter [16] Question: Future gross margin expectations - Management expects some improvement in gross margins in Q3 and Q4, but cautioned that it remains a variable [21] Question: Backlog and future contract wins - Management highlighted a strong pipeline for defense POs, particularly in munitions and communications [22] Question: Capital allocation priorities - The company is prioritizing CapEx for automation and considering buybacks and M&A for capital allocation [24] Question: Military stockpile rebuild efforts - Management noted that depletion of missile stockpiles could lead to increased manufacturing opportunities [28] Question: Operating margin outlook - Management expects operating margins to improve as the company scales, with fluctuations based on product mix [39] Question: Acquisition environment and strategy - The company is looking for complementary acquisitions in the $5 million to $15 million revenue range, focusing on positive EBITDA [46]

分组1 - M-tron Industries, Inc. reported quarterly earnings of $0.53 per share, missing the Zacks Consensus Estimate of $0.6 per share, and down from $0.63 per share a year ago, representing an earnings surprise of -11.67% [1] - The company posted revenues of $13.28 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.62%, and up from $11.81 million year-over-year [2] - M-tron Industries, Inc. shares have declined approximately 6.9% since the beginning of the year, contrasting with the S&P 500's gain of 8.4% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.64 on revenues of $13.5 million, and for the current fiscal year, it is $2.45 on revenues of $53.4 million [7] - The Engineering - R and D Services industry, to which M-tron Industries belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Core Insights - M-tron Industries, Inc. reported strong financial results for the second quarter and first half of 2025, highlighting significant revenue growth and an increase in backlog, indicating robust demand for its products and solutions [1][2][10] Financial Performance - Revenues for the three months ended June 30, 2025, were $13.3 million, a 12.5% increase from $11.8 million in the same period of 2024 [2][3] - For the six months ended June 30, 2025, revenues reached $26.0 million, up 13.1% from $23.0 million in the prior year [2][7] - Gross margin for the second quarter of 2025 was 43.6%, down from 46.6% in the same quarter of 2024, primarily due to product mix and tariffs [4][6] - Net income for the second quarter of 2025 was $1.6 million, or $0.53 per diluted share, compared to $1.7 million, or $0.63 per diluted share, in the prior year, reflecting a decrease of 10.6% [5][8] - Adjusted EBITDA for the second quarter was $2.4 million, a decrease of 4.1% from $2.5 million in the same quarter of 2024 [6][9] Backlog and Demand - The backlog as of June 30, 2025, was $61.2 million, representing a 35.0% increase from $45.3 million a year earlier, driven by strong demand in aerospace and defense programs [10][12] Management Commentary - The Interim CEO expressed optimism about the company's performance, citing strong revenue growth and a significant increase in backlog as indicators of future success [2]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis for M-tron Industries, Inc. [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for M-tron Industries, Inc., including the statements of operations, balance sheets, statements of equity, and cash flows, along with detailed notes explaining the company's business, accounting policies, segment information, related party transactions, income taxes, debt, stock-based compensation, equity, EPS, commitments, inventory, property, and revenue breakdown. [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section provides the company's unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024. Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $13,282 | $11,808 | $26,014 | $22,993 | | Total costs and expenses | $11,438 | $9,701 | $22,157 | $19,097 | | Operating income | $1,844 | $2,107 | $3,857 | $3,896 | | Net income | $1,560 | $1,744 | $3,190 | $3,230 | | Basic EPS | $0.55 | $0.64 | $1.12 | $1.19 | | Diluted EPS | $0.53 | $0.63 | $1.09 | $1.16 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024. Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total assets | $39,692 | $36,488 | | Total liabilities | $4,879 | $5,216 | | Total stockholders' equity | $34,813 | $31,272 | | Cash and cash equivalents | $15,529 | $12,641 | [Condensed Consolidated Statements of Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) This section details the changes in the company's stockholders' equity for the three and six months ended June 30, 2025 and 2024. Condensed Consolidated Statements of Equity (in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | March 31, 2024 | | :-------------------- | :------------ | :------------- | :------------ | :------------- | | Total Equity | $34,813 | $33,151 | $23,660 | $21,715 | | Net income (Q2) | $1,560 | - | $1,744 | - | | Stock-based compensation expense (Q2) | $278 | - | $201 | - | | Warrant-related costs (Q2) | $(297) | - | $0 | - | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024. Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $4,462 | $3,456 | | Net cash used in investing activities | $(1,398) | $(995) | | Net cash (used in) provided by financing activities | $(176) | $127 | | Increase in cash and cash equivalents | $2,888 | $2,588 | | Cash and cash equivalents at end of period | $15,529 | $6,501 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements, covering various accounting policies and financial details. [1. Background and Description of Business](index=10&type=section&id=1.%20Background%20and%20Description%20of%20Business) This note describes M-tron Industries, Inc.'s core business, products, primary markets, and manufacturing capabilities. - M-tron Industries, Inc. designs, manufactures, and markets highly engineered, high-reliability frequency and spectrum control products for electronic circuits[26](index=26&type=chunk) - Primary markets include aerospace & defense, avionics, industrials, and space[26](index=26&type=chunk) - Products include radio frequency, microwave and millimeter wave filters, various oscillators (OCXO, TCXO, VCXO), crystal resonators, Integrated Microwave Assemblies (IMA), and solid-state power amplifiers[28](index=28&type=chunk) - Manufacturing facilities are located in Orlando, Florida; Yankton, South Dakota; and Noida, India, all ISO 9001:2015 and RoHS compliant. U.S. facilities are also ITAR registered and AS9100 Rev D certified, with Yankton also MIL-STD-790 certified[29](index=29&type=chunk) [2. Summary of Significant Accounting Policies](index=10&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the company's key accounting policies and recent accounting pronouncements. - No material changes to significant accounting policies occurred during the three and six months ended June 30, 2025, compared to the 2024 Annual Report[31](index=31&type=chunk) R&D Costs (in thousands) | R&D Costs | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Research and development costs | $784 | $682 | $1,506 | $1,315 | - The Company adopted ASU 2023-07 (Segment Reporting) in December 2024, requiring enhanced segment disclosures retrospectively[41](index=41&type=chunk) - Future accounting standards include ASU 2024-03 (Expense Disaggregation Disclosures) effective after December 15, 2026, and ASU 2023-09 (Income Tax Disclosures) effective after December 15, 2024, both currently being assessed for impact[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) [3. Segment Information](index=13&type=section&id=3.%20Segment%20Information) This note provides details on the company's operating segments and how performance is assessed by the Chief Operating Decision Maker. - The Chief Executive Officer is the Chief Operating Decision Maker (CODM)[45](index=45&type=chunk) - The Company operates as a single reporting segment: Electronic Components, which includes filters, oscillators, crystal resonators, and integrated microwave assemblies[46](index=46&type=chunk)[49](index=49&type=chunk) - The CODM assesses segment performance and allocates resources based on Segment gross profit and Net income, using these metrics to evaluate manufacturing costs, pricing, reinvestment decisions, budget adherence, and competitive analysis[47](index=47&type=chunk) Segment Financials (in thousands) | Segment Financials | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $13,282 | $11,808 | $26,014 | $22,993 | | Segment gross profit | $5,792 | $5,501 | $11,198 | $10,280 | | Segment net income | $1,560 | $1,744 | $3,190 | $3,230 | | Total assets (as of period end) | $39,692 (June 30, 2025) | - | $36,488 (Dec 31, 2024) | - | [4. Related Party Transactions](index=15&type=section&id=4.%20Related%20Party%20Transactions) This note discloses financial transactions and balances with related parties, including GAMCO Investors, Inc. and The LGL Group, Inc. Related Party Transactions (in thousands) | Related Party Transactions | Three Months Ended June 30, 2025 (Income/Expense) | Three Months Ended June 30, 2024 (Income/Expense) | Six Months Ended June 30, 2025 (Income/Expense) | Six Months Ended June 30, 2024 (Income/Expense) | | :---------------------------------------- | :------------------------------------------------ | :------------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | GAMCO Investors, Inc. | $127 / $0 | $45 / $0 | $241 / $0 | $79 / $0 | | The LGL Group, Inc. | $12 / $(10) | $12 / $27 | $24 / $16 | $24 / $53 | | Total | $139 / $(10) | $57 / $27 | $265 / $16 | $103 / $53 | Related Party Balances (in thousands) | Related Party Balances | June 30, 2025 (Assets/Liabilities) | December 31, 2024 (Assets/Liabilities) | | :------------------------------------ | :--------------------------------- | :------------------------------------- | | GAMCO Investors, Inc. | $13,356 / $0 | $10,415 / $0 | | The LGL Group, Inc. | $128 / $0 | $59 / $0 | | Total | $13,484 / $0 | $10,474 / $0 | - The Company earned **$127 thousand** and **$241 thousand** in interest income from investments with GAMCO Investors, Inc. for the three and six months ended June 30, 2025, respectively, an increase from $45 thousand and $79 thousand in the prior year periods[55](index=55&type=chunk) - Mtron receives a net monthly payment of **$4 thousand** from LGL Group under the Amended and Restated Transitional Administrative and Management Services Agreement (Mtron TSA)[57](index=57&type=chunk)[58](index=58&type=chunk) [5. Income Taxes](index=17&type=section&id=5.%20Income%20Taxes) This note details the company's effective tax rates and the impact of recent tax legislation. Effective Tax Rate | Effective Tax Rate | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Effective Tax Rate | 21.8% | 18.7% | 22.4% | 19.4% | - Differences from the U.S. federal statutory rate of **21.0%** are primarily due to research and development credits, permanent differences, and state taxes[64](index=64&type=chunk) - The recently enacted One Big Beautiful Bill Act (OBBBA) introduces significant changes to the U.S. federal tax system, including restoration of **100% accelerated tax depreciation**, immediate expensing of domestic R&E, and modifications to GILTI, FDII, and BEAT rates. The Company is assessing its potential impact[65](index=65&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) [6. Revolving Credit Agreement](index=19&type=section&id=6.%20Revolving%20Credit%20Agreement) This note describes the company's revolving line of credit with Fifth Third Bank. - Mtron has a revolving line of credit with Fifth Third Bank for up to **$5,000 thousand**, bearing interest at SOFR plus **2.25%**, maturing June 15, 2026[69](index=69&type=chunk) - As of June 30, 2025, and December 31, 2024, there were **no outstanding borrowings** under this credit line[70](index=70&type=chunk) [7. Stock-Based Compensation](index=19&type=section&id=7.%20Stock-Based%20Compensation) This note provides information on stock-based compensation expense, unrecognized costs, and stock option grants. Stock-Based Compensation Expense (in thousands) | Stock-Based Compensation Expense | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Restricted stock awards | $181 | $201 | $430 | $408 | | Stock options | $97 | $0 | $97 | $0 | | Total | $278 | $201 | $527 | $408 | - As of June 30, 2025, **193,916 shares** remained available for future issuance under the 2022 Incentive Plan[71](index=71&type=chunk) - Unrecognized compensation cost for unvested restricted shares was **$1,440 thousand** as of June 30, 2025, expected to be recognized over a weighted-average period of **1.7 years**[72](index=72&type=chunk) - Stock options granted in the six months ended June 30, 2025, had a weighted-average grant date fair value of **$23.31**, with an expected volatility of **74.5%** and an expected term of **4.0 years**[74](index=74&type=chunk)[76](index=76&type=chunk) [8. Stockholders' Equity](index=21&type=section&id=8.%20Stockholders'%20Equity) This note details changes in the number of common shares outstanding. Shares Outstanding | Shares Outstanding | Six Months Ended June 30, 2025 | Year Ended December 31, 2024 | | :----------------- | :----------------------------- | :--------------------------- | | Beginning of period | 2,911,165 | 2,786,321 | | Stock-based compensation | 13,814 | 32,548 | | Exercise of stock options | 3,350 | 92,296 | | Restricted shares forfeited | (4,424) | 0 | | End of period | 2,923,905 | 2,911,165 | [9. Earnings per Share ("EPS")](index=21&type=section&id=9.%20Earnings%20per%20Share%20(%22EPS%22)) This note presents the basic and diluted earnings per share calculations. EPS (in thousands, except share data) | EPS | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $1,560 | $1,744 | $3,190 | $3,230 | | Basic EPS | $0.55 | $0.64 | $1.12 | $1.19 | | Diluted EPS | $0.53 | $0.63 | $1.09 | $1.16 | | Weighted average shares outstanding - basic | 2,853,383 | 2,728,599 | 2,848,419 | 2,723,293 | | Weighted average shares outstanding - diluted | 2,934,594 | 2,779,802 | 2,931,053 | 2,783,739 | - Warrants to purchase **582,233 shares** of common stock were excluded from diluted EPS calculations for the three and six months ended June 30, 2025, as their inclusion would be antidilutive[78](index=78&type=chunk) [10. Commitments and Contingencies](index=21&type=section&id=10.%20Commitments%20and%20Contingencies) This note addresses potential liabilities from litigation and other commitments. - The Company records a liability for probable and estimable losses from litigation. As of June 30, 2025, there is **no legal accrual** for contingencies[79](index=79&type=chunk) [11. Other Financial Statement Information](index=23&type=section&id=11.%20Other%20Financial%20Statement%20Information) This note provides supplementary details on inventories and property, plant, and equipment. Inventories, Net (in thousands) | Inventories, Net | June 30, 2025 | December 31, 2024 | | :------------------------------ | :------------ | :---------------- | | Raw materials | $4,365 | $4,349 | | Work in process | $4,599 | $4,876 | | Finished goods | $1,737 | $1,720 | | Total gross inventory | $10,701 | $10,945 | | Reserve for excess and obsolete inventory | $(1,585) | $(1,436) | | Inventories, net | $9,116 | $9,509 | Property, Plant and Equipment, Net (in thousands) | Property, Plant and Equipment, Net | June 30, 2025 | December 31, 2024 | | :------------------------------------------------ | :------------ | :---------------- | | Gross property, plant and equipment | $29,094 | $27,696 | | Less: Accumulated depreciation | $(23,155) | $(22,635) | | Property, plant and equipment, net | $5,939 | $5,061 | [12. Domestic and Foreign Revenues](index=23&type=section&id=12.%20Domestic%20and%20Foreign%20Revenues) This note breaks down the company's revenues by domestic and foreign geographical regions. Revenues (in thousands) | Revenues | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Malaysia | $1,471 | $1,426 | $2,730 | $2,308 | | Australia | $1,140 | $645 | $1,203 | $1,419 | | Greece | $292 | $0 | $537 | $388 | | All other foreign countries | $846 | $712 | $1,668 | $1,338 | | Total foreign revenues | $3,749 | $2,783 | $6,138 | $5,453 | | Total domestic revenues | $9,533 | $9,025 | $19,876 | $17,540 | - Total foreign revenues increased by **34.7%** for the three months ended June 30, 2025, and by **12.6%** for the six months ended June 30, 2025, compared to the prior year periods[83](index=83&type=chunk) [13. Subsequent Events](index=23&type=section&id=13.%20Subsequent%20Events) This note discloses any significant events occurring after the balance sheet date. - The Company did not identify any subsequent events requiring adjustment or disclosure in the consolidated financial statements after the balance sheet date through the issuance date[84](index=84&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, condition, and operational results for the three and six months ended June 30, 2025, compared to the prior year. It covers revenue drivers, cost changes, profitability, backlog growth, non-GAAP measures like Adjusted EBITDA, and an analysis of liquidity and capital resources, including cash flow activities and the revolving credit facility. [Overview](index=24&type=section&id=Overview) This section provides a brief overview of M-tron Industries, Inc.'s business and market focus. - Mtron designs, manufactures, and markets highly-engineered, high reliability frequency and spectrum control products for aerospace & defense, avionics, industrials, and space markets[88](index=88&type=chunk) [Trends and Uncertainties](index=24&type=section&id=Trends%20and%20Uncertainties) This section discusses key trends and uncertainties, including the impact of tariffs on the company's operations. - Tariffs imposed by the U.S. federal administration and retaliatory tariffs from foreign governments have caused an increase in Manufacturing cost of sales, but are not anticipated to have a material impact on operations[90](index=90&type=chunk) - The Company is seeking exemptions and evaluating alternative material sources to mitigate tariff impacts[90](index=90&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including revenues, costs, operating income, and net income for the periods presented. Results of Operations (in thousands) - Three Months Ended June 30 | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | $ Change | % Change | | :-------------------- | :------------------------------- | :------------------------------- | :------- | :------- | | Revenues | $13,282 | $11,808 | $1,474 | 12.5% | | Manufacturing cost of sales | $7,490 | $6,307 | $1,183 | 18.8% | | Engineering, selling and administrative | $3,948 | $3,394 | $554 | 16.3% | | Total costs and expenses | $11,438 | $9,701 | $1,737 | 17.9% | | Operating income | $1,844 | $2,107 | $(263) | -12.5% | | Net income | $1,560 | $1,744 | $(184) | -10.6% | | Gross margin | 43.6% | 46.6% | -298 bps | | Results of Operations (in thousands) - Six Months Ended June 30 | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | $ Change | % Change | | :-------------------- | :----------------------------- | :----------------------------- | :------- | :------- | | Revenues | $26,014 | $22,993 | $3,021 | 13.1% | | Manufacturing cost of sales | $14,816 | $12,713 | $2,103 | 16.5% | | Engineering, selling and administrative | $7,341 | $6,384 | $957 | 15.0% | | Total costs and expenses | $22,157 | $19,097 | $3,060 | 16.0% | | Operating income | $3,857 | $3,896 | $(39) | -1.0% | | Net income | $3,190 | $3,230 | $(40) | -1.2% | | Gross margin | 43.0% | 44.7% | -166 bps | | - Revenue increases for both periods were primarily driven by strong defense program product and solution shipments[92](index=92&type=chunk)[98](index=98&type=chunk) - Gross margin decreased due to product mix and the impact of tariffs[93](index=93&type=chunk)[99](index=99&type=chunk) - Total other income, net, increased significantly for both periods, primarily due to higher interest income from investments in money market mutual funds[94](index=94&type=chunk)[103](index=103&type=chunk) [Backlog](index=26&type=section&id=Backlog) This section reports on the company's order backlog and its changes over time. Backlog (in thousands) | Backlog | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--------------------- | :------------ | :---------------- | :------------ | | Order backlog | $61,199 | $47,239 | $45,322 | - Backlog increased by **$13,960 thousand (29.6%)** from December 31, 2024, and by **$15,877 thousand (35.0%)** from June 30, 2024, reflecting continued strength in aerospace & defense and avionics customer orders[101](index=101&type=chunk) [Non-GAAP Financial Measures](index=27&type=section&id=Non-GAAP%20Financial%20Measures) This section presents and reconciles non-GAAP financial measures, specifically Adjusted EBITDA, used by management to assess performance. - Adjusted EBITDA is a non-GAAP measure used to understand operational results, excluding interest income/expense, depreciation, amortization, non-cash stock-based compensation, and other discrete items[105](index=105&type=chunk)[107](index=107&type=chunk) Adjusted EBITDA (in thousands) | Adjusted EBITDA | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income before income taxes | $1,995 | $2,146 | $4,109 | $4,009 | | EBITDA | $2,141 | $2,322 | $4,394 | $4,377 | | Adjusted EBITDA | $2,419 | $2,523 | $4,921 | $4,785 | - Adjusted EBITDA decreased by **$104 thousand** for the three months ended June 30, 2025, primarily due to lower gross margins and higher interest income, partially offset by higher depreciation and stock-based compensation[105](index=105&type=chunk) - Adjusted EBITDA increased by **$136 thousand** for the six months ended June 30, 2025, driven by higher revenues, depreciation, and stock-based compensation, partially offset by higher interest income[106](index=106&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, cash flow activities, and ability to meet its financial obligations. - Cash and cash equivalents increased to **$15,529 thousand** as of June 30, 2025, from **$12,641 thousand** as of December 31, 2024[110](index=110&type=chunk) Cash Flow Activity (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Cash provided by operating activities | $4,462 | $3,456 | | Cash used in investing activities | $(1,398) | $(995) | | Cash (used in) provided by financing activities | $(176) | $127 | | Net change in cash and cash equivalents | $2,888 | $2,588 | - Operating cash flow increased by **$1,006 thousand**, primarily due to increased stock-based compensation and a positive net change in operating assets and liabilities[112](index=112&type=chunk)[115](index=115&type=chunk) - Investing cash flow increased by **$403 thousand**, mainly due to higher capital expenditures for growth, product development, and operational efficiencies[113](index=113&type=chunk) - Financing cash flow decreased by **$303 thousand**, primarily due to costs incurred related to warrant issuance in April 2025[114](index=114&type=chunk) - The Company believes existing cash, marketable securities, and cash from operations will provide sufficient liquidity for the next 12 months. The Board of Directors maintains a policy of not paying cash dividends[116](index=116&type=chunk)[117](index=117&type=chunk) [Critical Accounting Estimates](index=29&type=section&id=Critical%20Accounting%20Estimates) This section addresses the company's critical accounting estimates and any material changes. - No material changes to critical accounting estimates were disclosed compared to the Annual Report on Form 10-K filed on March 27, 2025[121](index=121&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there are no applicable quantitative and qualitative disclosures about market risk for the company. - This item is not applicable for the Company[122](index=122&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the company's disclosure controls and procedures and reports on any changes in internal control over financial reporting. [Evaluation of Disclosure Controls and Procedures](index=29&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section reports on the effectiveness of the company's disclosure controls and procedures. - As of June 30, 2025, the Principal Executive Officer and Principal Financial Officer concluded that the Company's disclosure controls and procedures were effective[124](index=124&type=chunk) [Changes in Internal Control Over Financial Reporting](index=29&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section discusses any changes in the company's internal control over financial reporting during the quarter. - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[126](index=126&type=chunk) [PART II. OTHER INFORMATION](index=31&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, other information, exhibits, and signatures for the quarterly report. [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) This section states that the company is not aware of any material pending legal proceedings beyond ordinary routine litigation incidental to its business. - The Company is not aware of any material pending legal proceedings, other than ordinary routine litigation incidental to its business[128](index=128&type=chunk) [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) This section confirms that no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter. - No directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" during the three months ended June 30, 2025[129](index=129&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists all exhibits included or incorporated by reference in the Quarterly Report on Form 10-Q, including organizational documents, warrant agreements, and certifications. - Exhibits include the Amended and Restated Separation and Distribution Agreement, Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, Warrant Agreement, and certifications from the Principal Executive Officer and Principal Financial Officer[130](index=130&type=chunk) [SIGNATURES](index=33&type=section&id=SIGNATURES) This section contains the signatures of the authorized officers, confirming the due submission of the report. - The report was signed by Cameron Pforr, Interim Chief Executive Officer and Chief Financial Officer, on August 12, 2025[136](index=136&type=chunk)